How can you contest a default on your credit file?

When a default is on your credit file, lenders believe there’s a likelihood you won’t pay your debts on time and may even stop repayments altogether - this illustrates just how damaging a default can be and why you need to contest it if it’s incorrect.

So why might a default marker have been incorrectly placed? Lenders and other creditors do make mistakes when reporting information to credit reference agencies, with examples of errors including:

• Reporting the same missed payment twice
• Flagging up your credit account in error
• Using a default maker incorrectly

How to contest a default marker?

• Contact the creditor who has registered the default - you’ll need to present documentary evidence to support your case, such as credit card statements, bank statements, or receipts. If the creditor argues the default marker is correct, get in touch with the credit reference agencies.
• Once you’ve identified which credit reference agencies show an incorrect default marker you can file a dispute with the agency or agencies concerned. Each will have their own method for doing so, but it typically involves downloading and completing a form from their website.
• The credit reference agency will investigate the default, but if they aren’t able to change your credit file you’re entitled to state on your credit report that you believe the default to be incorrect. This is done via a statement (of up to 200 words) that appears next to the disputed item, so anyone reading your credit file will see you don’t agree with the default and will hopefully bear that in mind when making their decision.